The pound is weaker against the dollar and mostly unchanged against the euro this morning. GDP figures for the UK were released earlier, showing that the economy shrank by 1.6% in the first quarter of this year due to the reintroduction of COVID-19 restrictions.
Inflation rate data will be released for the Eurozone later today and the markets will be watching closely to assess whether the figure will stay around the European Central Bank’s target of just below 2%.
Meanwhile, the dollar is strong against a basket of currencies due to the global rise of the Delta variant. The greenback tends to benefit in times of uncertainty due to its status as a ‘safe haven’ currency.
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